How was BSNL KILLED (strategically) by the Powerful people of India? : BSNL Tragedy Case Study https://www.youtube.com/watch?v=Wlgk8XXHWuA
23 April 2022
For the past 1.5 years, we have been hearing the news about Govt’s plans to shut down BSNL, and ever since we started following the news, we have always seen BSNL incurring 1000s of crores of losses every single year, infact in the past 10 years, BSNL has incurred a combined loss of more than 80,000cr. and considering the case of Air India and govt bureaucracy in general, we by default assume that BSNL is also one of the ill-run businesses that the govt just can't handle isn't it!!
Well, guess what guys, in FY21 while the market went crazy to see Reliance jio generate a profit of Rs 12,537 crore, very few of us know that there was a time when BSNL generated a profit of 10,183cr! and from 2001–2008 Bsnl had generated a cumulative profit of 46668 Cr which was more than the next 3 telecom operators combined and that too in spite of all the subsidized schemes that it rolled out. and not just that it once had a market share of 70% and literally acted as the backbone of Indian telecommunication.
So The question is What exactly went wrong with BSNL that it suddenly went from being a jewel of India to a sick company in less than a decade?
Was it yet another govt mishandling or was it deliberately paralyzed by the private sector? and most importantly, as citizens of India, what are the lessons that we need to from the Tragic downfall of BSNL?
“They want to let BSNL die”: The rot inside India’s government-owned telecom firms https://qz.com/india/1936622/why-indias-bsnl-mtnl-are-losing-out-to-firms-like-reliance-jio/ November 23, 2020
“We have also known for a long time that our old landline copper cables need to be upgraded to fibre cables, but we have not been given the budgets,” said Shirke, the section supervisor.
But the most glaring disadvantage for BSNL and MTNL is the fact that they are still stuck with 3G technology, while a large number of consumers have rapidly moved on to 4G since 2016. “The government has not allowed us to get a 4G license even though all our private sector competitors provide 4G,” said John. “So naturally we are losing customers we cannot blame them for choosing better and faster services.” In the Rs70,000 crore revival package approved for the companies last year, nearly Rs 24,000 crore was meant to be for allocating 4G spectrum to BSNL and MTNL. A tender for buying 4G equipment from Chinese companies Huawei and ZTE was finalised, but in July, BSNL was forced to cancel the tender. After 20 Indian soldiers were killed during a stand-off with the Chinese army in June, the central government barred public sector companies from striking any deals with Chinese companies. “But private companies were not stopped from such deals. How is this fair?” said Shirke.
The combined impact of outdated services and lower staff will inevitably mean a drop in customer base and even bigger financial losses, say unions. “The government is giving encouragement to private players in the industry, but letting its own organisation stagnate,” said Dinesh Mistry, the assistant general secretary of the National Union of BSNL Workers. “Every decision that the government has taken has been against the interests of MTNL-BSNL,” said Arvind Sawant, the head of the MTNL Kamgar Sangh and also a member of Parliament from the Shiv Sena. “They want to let BSNL die.”
Behind BSNL and MTNL’s poor services: A retirement scheme, staff shortages and delayed 4G https://scroll.in/article/977512/behind-bsnl-and-mtnls-poor-services-a-retirement-scheme-staff-shortages-and-delayed-4g
Users across the country are giving up their MTNL or BSNL connections as the loss-making public sector companies struggle to stay afloat.
Aarefa Johari
Nov 19, 2020 ·